Forex Today: Wall Street saved the day

Valeria Bednarik FXStreet

What you need to take care of on Thursday, August 4:

Tensions eased a bit on Wednesday, pushing the greenback down across the FX board ahead of the US opening. The dollar, however, recovered its poise after the release of an upbeat ISM Services PMI, which indicated that the local economy remains resilient.

US indexes surged, capping the safe-haven dollar’s demand, partially helped by solid earnings reports and encouraging local data.

Meanwhile, different US Federal Reserve officials reinforce the market’s speculation the Fed is far from done with aggressive tightening, putting a 75 bps rate hike back on the table for September.

Recession fears maintain the US Treasury yield curve inverted, and the difference between the 2-year note and the 10-year note yields has widened to 36 bps. Nevertheless, Wall Street managed to post solid gains, helped by another batch of solid earnings reports.

The EUR/USD pair trades around 1.0160, as tepid European data undermined demand for the shared currency. The GBP/USD pair finished the day in the red at 1.2145.

Commodity-linked currencies, on the other hand, benefited from Wall Street’s strength. AUD/USD trades around 0.6950 while USD/CAD is marginally lower at 1.2840.

Gold price settled at $1,765 a troy ounce, while crude oil prices edged lower, as different OPEC+ sources suggest that they won’t increase output. Also, US weekly data showed slowing demand. WTI ended the day at $90.90 a barrel.

The Bank of England will announce its monetary policy decision on Thursday.

Bitcoin Price Prediction: A fundamental line in the sand

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.